Total vacancy across the suburban submarkets is down to 24.3%, according to CB Richard Ellis, while Trammell Crow Co. pegs is at 17.9%, down a full percentage point from the beginning of the year. Both studies include sublease space in the equation.
The meager improvement is the result of smaller tenants taking space, even though it often is through extensions and renewals. "Positive net absorption and signs of firming demand could indicate that the worst is behind us," says CB Richard Ellis senior vice president Jeffrey Mann. "At this time, no large new tenants appear poised to enter the market but increased activity among smaller entrepreneurial tenants could result in the continued slow absorption of space."
Absorption has been positive for two of the last three quarters, according to CB Richard Ellis. In the second quarter, the hard-hit East-West Corridor saw 146,000 sf of net absorption, according to CB Richard Ellis, propelled by a 94,000-sf lease by McCain Foods at 2275 Cabot Dr.
However, the largest suburban submarket remains burdened by a 20.9% overall vacancy rate, according to Trammell Crow Co., including 1.8 million sf of available sublease space.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.